Three Reasons to Consult an Actuary

In the world of employee benefits, organizations and brokers often find themselves struggling to get a clear picture of the entire health benefits landscape. For self-funded groups, the challenge lies in managing the complex process of rate building, monitoring claims experience, and staying on top of regulatory compliance. Meanwhile, fully insured groups are constantly searching for ways to navigate the complicated terrain of renewal negotiations. Let’s look at three reasons each group may need the expertise of an actuary.

Self-Funded Groups

1. Assessing Risk: Actuaries can help self-funded groups assess their risk exposure by using statistical analysis to project future claims costs. They can also help develop cost-effective risk management strategies, such as setting reserves or helping understand stop-loss coverage.
2. Plan Design: Actuaries can help self-funded groups design benefit plans that balance coverage and cost. They can analyze claims data to identify cost drivers, evaluate plan design options, and project the impact of plan changes on claims costs.
3. Fiscal Planning: Actuaries can help self-funded groups with fiscal planning by providing detailed financial projections based on past claims experience and expected future trends. They can also help with budgeting, forecasting, and cash flow analysis to ensure the financial stability of the plan. Actuaries can also provide advice on funding options, such as self-insurance, reinsurance, and stop-loss insurance, to help self-funded groups manage costs and optimize financial performance.

By working with an actuary, you can design benefit plans that meet the unique needs of your organization, while also keeping costs under control.

For self-funded groups, managing employee benefit plans can be complex and challenging. An actuary is a key resource to properly assess your employee benefits strategy. By working with an actuary, you can design benefit plans that meet the unique needs of your organization, while also keeping costs under control. Actuaries can also help you monitor your claims experience and identify areas where you can improve outcomes for your employees, leading to greater satisfaction and loyalty. And with their expertise in fiscal planning, actuaries can help you develop effective financial strategies and maximize your return on investment, ensuring your employee benefit plan is financially sustainable and meets your business objectives.

Fully Insured Groups

1. Renewal Analysis: Actuaries can help fully insured groups analyze their renewal rates and negotiate with insurance carriers to get the best possible rates. They can also evaluate the impact of plan changes on claims costs and provide guidance on plan design options.
2. Cost Management: Actuaries can help fully insured groups manage their costs by identifying cost drivers and recommending cost containment strategies. They can also evaluate the cost-effectiveness of different plan options and guide alternative funding arrangements, such as self-insurance.
3. Claims Analysis: Actuaries can help fully insured groups analyze their claims data (when available) to identify trends, cost drivers, and opportunities for cost savings. They can also help evaluate the performance of different providers and assist in decisions that might need to be made with the insurance company related to different networks options or strategies to lower cost.

When it comes to fully insured groups, it’s important to have a complete understanding of your employee benefit plans.

When it comes to fully insured groups, it’s important to have a complete understanding of your employee benefit plans. By calling an actuary, you can gain insights into plan design and pricing, allowing you to optimize your benefits while keeping costs in check. Actuaries can also help you assess your claims experience and identify areas for improvement, leading to better health outcomes for your employees and a healthier bottom line for your business. And finally, with an actuary’s guidance, you can navigate the complex landscape of financial planning requirements with confidence, ensuring that your plans remain competitive.  In today’s market the question often comes up, “when is the right time to go self-funded?”, actuaries can help you know that answer and help you be set up for success.

Conclusion

Whether you’re a self-funded group looking to manage your employee benefits more effectively or a fully insured group exploring the possibility of self-funding, there are practical reasons to seek out the service of an actuary. We’ve highlighted three reasons for each group and there are even more tools available to help you get a complete picture of your employee benefits. How is your organization currently managing your employee benefits plan? We’d like to hear from you! Contact AHP and let’s discuss ways to simplify managing employee benefits and how to make informed decisions that benefit your organization and the health of your employees.